Arena Investors Completes Recapitalization of Charge Enterprises

Rhea-AI Summary

Arena Investors has completed the recapitalization of Charge Enterprises, a leading EV charging and broadband infrastructure company, with Arena becoming the majority owner. This move has significantly reduced Charge's indebtedness, providing a solid financial foundation for future growth. Under new leadership, Charge aims to capitalize on its market-leading EV charging infrastructure capabilities and services, with a focus on continued business expansion.

Positive

• Strengthened balance sheet and ample access to capital for future growth

• Longtime largest shareholder becoming majority owner

• Reduced indebtedness providing a strong financial position

• Strategic, financial, and operational support from Arena and its affiliates

• Focus on innovative EV charging infrastructure solutions and services

• New partnerships with key industry players to drive growth

Negative

• None.

• Now with a strengthened balance sheet and ample access to capital, Charge looks ahead to continued business growth
• Longtime largest shareholder to become majority owner as Company's indebtedness is dramatically reduced, providing strong financial position for future growth
• Under new leadership, Company will continue to capitalize on expanding its market-leading EV charging infrastructure capabilities and services

NEW YORK, May 3, 2024 /PRNewswire/ -- Arena Investors, LP (and its affiliates, collectively, "Arena"), a global institutional asset manager with approximately $3.5 billion of invested and committed assets under management, today announced that it has recapitalized Charge Enterprises, Inc. (NASDAQ: CRGE) ("Charge" or the "Company"), a leading electric vehicle (EV) charging and broadband infrastructure company. As the new majority equity owner of Charge, Arena and its affiliates will provide strategic, financial, and operational resources to support the Company's continued growth.

Charge is a New York-based EV charging company that provides clients with end-to-end project management services, from advising, designing, engineering, acquiring, and installing equipment, to monitoring, servicing, and maintenance, alongside complementary businesses in electrical, broadband, solar, and infrastructure that provide cashflow for overall corporate opportunities and reinvestment. The company is at the forefront of providing innovative, flexible, turnkey infrastructure solutions that enable clients including automotive fleet operators, owners of real estate ranging from stadiums to retail, and government entities to seize the opportunities presented by the next wave of electrified transportation and high-speed connectivity across the United States.

With best-in-class innovation, technical execution, and customer experience, Charge continues to focus on growth, adding to the new relationships announced in 2023 with Ford and Stellantis, and capitalizing on the 2023 announced partnerships with Eaton and Autel. With approximately 168,000 gas stations in the United States compared to around 62,000 charging stations and the exponential growth in EV adoption, the opportunity for Charge is enormous. By deploying a multi-phased strategy to reach end users through the approximately 18,000 franchised auto dealers across the country, Charge is uniquely positioned to scale to the demands of the EV revolution.

In conjunction with the recapitalization, Arena has appointed Scott Haeger to serve as interim CEO of Charge to help manage the transition and provide operational oversight. Haeger joins Charge from Quaestor Strategic Advisors ("QSA"), where he serves as Senior Operating Executive, Transformation. Haeger holds a BS in mechanical engineering from Purdue University and an MBA from the Purdue University Daniels School of Business.

"We have long believed that Charge will play a key role in developing vital electric vehicle charging and broadband infrastructure across the U.S., have been impressed by the magnitude of its growth opportunity, and are thrilled to be in a position to help the Company fully seize that opportunity," said Vincent DeVito, Managing Director–Asset Management for Arena and its affiliated special servicer, Quaestor Advisors, LLC ("QA"). "We believe this new, recapitalized structure sets the stage for Charge to deliver even more value to its clients, their end customers and the communities in which they operate. We look forward to working with its skilled business unit leaders and dedicated employees as we pursue that compelling opportunity together."

"Charge is beginning a new chapter, dedicated to delivering stronger profitability and growth and to driving crucial expansion in the next wave of transportation and connectivity," said Mr. Haeger. "I look forward to working together with Charge's exceptional operational team and the experienced managers at Arena to chart the most effective strategic direction for the Company."

About Charge Enterprises, Inc.
Charge Enterprises, Inc. (NASDAQ: CRGE) is an electrical, broadband and EV charging infrastructure company that provides clients with end-to-end project management services. Charge's vision is to be a leader in enabling the next wave of transportation and connectivity. By building, designing, and operating seamless infrastructure for electric vehicles, Charge aims to create a future where transportation is clean, efficient, and connected and to empower individuals, communities, and businesses to thrive in a more sustainable world. The Company's plan is to cultivate repeat customers and recurring revenue by deploying a multi-phased strategy, initially where investment in the EV charging revolution is taking place, the nation's approximately 18,000 franchised auto dealers. To learn more about Charge, visit www.charge.enterprises.

About Arena Investors, LP
Arena Investors, LP is an institutional asset manager founded in partnership with The Westaim Corporation (TSXV: WED). With approximately $3.5 billion of invested and committed assets under management, and a team of over 180 employees in offices globally, Arena provides creative solutions for those seeking capital in special situations, alongside operational capabilities to manage and improve businesses. The firm brings individuals with decades of experience, a track record of comfort with complexity, the ability to deliver within time constraints, and the flexibility to engage in transactions and business operations that cannot be addressed by banks and other conventional financial institutions. See www.arenaco.com for more information.

About Quaestor Advisors, LLC
Quaestor Advisors, LLC ("QA") is the affiliated servicer for Arena Investors, LP, providing risk-reducing and return-enhancing asset servicing. In addition to offering loan operations and accounting services, QA's mandate is to stay ahead of potential problems, preserve value, and add value through surveillance, relationship management, strategic management of assets, and productive workouts when needed. With over 100 professionals across North America, Europe, and Asia dedicated to special-situations asset servicing, the Firm has serviced hundreds of complex transactions totaling billions of dollars of capital. For more information on QA and its services, visit www.quaestoradvisors.com. These services are provided to a select group of third-party asset owners by Arena affiliate Quaestor Consulting Group ("QCG"). To learn more about QCG, visit www.quaestorconsulting.com.

About Quaestor Strategic Advisors, LLC
Quaestor Strategic Advisors, LLC ("QSA") is the portfolio operations team for Arena Investors, LP. QSA maximizes value creation in Arena businesses and assets, by having the capabilities to operate and improve their operations through enhancements in human resources, marketing, financial controls, and information technology. QSA provides analysis, advice and ready access, on a flexible basis, to the hands-on skills that middle-market companies and assets are often challenged to access. For more information on QSA and its services, visit www.quaestorstrategic.com. These services are provided to a select group of third-party asset owners by Arena affiliate Quaestor Consulting Group ("QCG"). To learn more about QCG, visit www.quaestorconsulting.com.

Contact:
Prosek Partners:
Joshua Clarkson
pro-arena@prosek.com 

Arena Investors and its affiliates:
Parag Shah
ir@arenaco.com 

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SOURCE Arena Investors